What is BLACK SCHOLES OPTION-PRICING MODEL?

How European options are valued for the sake of equities. The stocks volatility, price, dividends, interest rates, and expiration are used. The assumptions used are no dividend pay, simultaneous trading, no commissions, lending and borrowing have the same

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Related Legal Terms
BLACK-SCHOLES MODEL, BLACK BOX MODEL, GARMAN KOHLHAGEN MODEL, CAPITAL ASSET PRICING MODEL (CAPM), EUROPEAN OPTION, CALL OPTION, BOTTOM-UP PRICING, OPTION SPREAD, UP AND IN OPTION, DIVIDEND DISCOUNT MODEL


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